SETTLEMENT AGREEMENT
UNDER THE AMERICANS WITH DISABILITIES ACT
BETWEEN THE UNITED STATES OF AMERICA
AND
MEGABUS USA LLC AND MEGABUS NORTHEAST LLC

BACKGROUND

The parties to this Settlement Agreement ("Agreement") are the United States of America and Megabus USA LLC and Megabus Northeast LLC ("Megabus").

This matter was initiated by a compliance review, dated January 19, 2010, of Megabus located in Chicago, Ill., and Elizabeth, N.J. The Attorney General conducted this investigation under the authority granted by section 308(b) of the Americans with Disabilities Act ("ADA"), 42 U.S.C. § 12188(b).

This matter was expanded by a complaint, received September 21, 2010, alleging that on September 11, 2010, Megabus provided non-compliant service. The complainant alleges that on a return trip from New York, N.Y., to Baltimore, Md., despite his wife having made a reservation on August 18, 2010, and reminding the New York, N.Y., station agent of their need for an accessible vehicle that morning, he was not provided with use of the ramp upon boarding or alighting the vehicle. Upon boarding, rather than being able to remain in his wheelchair and to ride in the securement area, he was assisted by Megabus personnel to a seat, and upon alighting he was lowered off the vehicle without the use of the ramp.

The parties have reached agreement that it is in the parties' best interests, and the United States believes that it is in the public interest, to resolve this matter by settlement agreement. The parties have therefore voluntarily entered into this Agreement, agreeing as follows:

TITLE III COVERAGE AND REQUIREMENTS

The Attorney General is responsible for administering and enforcing title III of the ADA, 42 U.S.C. §§ 12181-12189, and the relevant regulations implementing title III, 29 C.F.R. pt. 36 and 49 C.F.R. pts. 37 and 38.

Megabus is comprised of two Delaware corporations. Their principal places of business are 4400 South Racine Avenue, Chicago, Ill. 60609, and 349 First Street, Elizabeth, N.J. 07206.

The immediate parent company of Megabus is Independent Bus Company Inc., a New Jersey corporation, with principal place of business at 349 First Street, Elizabeth, N.J. 07206. The immediate parent company of Independent Bus Company Inc. is Coach USA Inc., a Delaware corporation, with principal place of business at 160 South Route 17 North, Paramus, N.J. 07652.

Megabus is a private fixed route transportation service that is engaged in the business of transporting people and whose operations affect commerce within the meaning of 42 U.S.C. § 12184(a) and 49 C.F.R. §§ 37.3 and 37.5(f); a public accommodation that leases, leases to, or operates a terminal, depot, or other station used for specified public transportation within the meaning of 42 U.S.C. §§ 12181(7)(G) and 12181(10) and 28 C.F.R. § 36.104; an operator of an over-the-road bus ("OTRB") within the meaning of 42 U.S.C. § 12181(5) and 49 C.F.R. § 37.3; and a large operator (Class I motor carrier) within the meaning of 49 C.F.R. § 1420.3.

Under title III of the ADA, a large OTRB fixed route operator must ensure that any new vehicle purchased or leased since October 30, 2000, is readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.183(a).

Additionally, large OTRB fixed route operators must ensure that at least 50 percent of the buses in their fixed route fleet are readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs, by October 30, 2006, and that 100 percent of the buses in their fixed route fleet are readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs, by October 29, 2012. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.185.

Until 100 percent of the fleet of an OTRB fixed route operator is composed of accessible OTRBs, the operator may require up to 48 hours' advance notice to provide this service. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.193.

An OTRB operator will not exclude persons with disabilities from participation in or deny them the benefits of specified public transportation services in violation of section 304 of the ADA, 42 U.S.C. § 12184, and the relevant implementing regulations, 28 C.F.R. pt. 36, and 49 C.F.R. pts. 37 and 38.

An OTRB operator will not use or request the use of persons other than its employees (e.g., family members or traveling companions of a passenger with a disability, medical or public safety personnel) for routine boarding or other assistance to passenger with disabilities, unless the passenger requests or consents to assistance from such persons. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.207(b).

Whenever an OTRB operator makes an intermediate or rest stop, all passengers with disabilities, including individuals using wheelchairs, shall be permitted to leave and return to the bus on the same basis as other passengers. The operator shall ensure that assistance is provided to passengers with disabilities as needed to enable the passenger to get on and off the bus at the stop. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.201(a).

Whenever an OTRB operator is making an express run of three hours or more without a rest stop, and a passenger with a disability who is unable to use the inaccessible restroom requests an unscheduled rest stop, the operator shall make a good faith effort to accommodate the request. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.201(c).

FINDINGS

Megabus is a private motor carrier that currently operates OTRB service along approximately seven routes out of a hub based in Chicago, Ill., approximately six routes out of a hub based in New York, N.Y., approximately seven routes out of a hub in Philadelphia, Pa., and approximately nine routes out of a hub based in Washington, D.C., providing advanced-reservation service and, on a more limited basis, walk up service at select locations. Megabus provides fixed route transportation according to a fixed schedule. Its' schedules and fares are published on its website at http://www.megabus.com.

Prior to January 31, 2010, Megabus purchased nine new single-decker MCI OTRBs for use in its transportation business. One of these OTRBs is known not to be wheelchair accessible, the bus with fleet number 58526 ("inaccessible MCI OTRB").

Prior to January 31, 2010, Megabus purchased 84 new double-decker Vanhool OTRBs for use in its transportation business. All of these OTRBs are readily accessible to and usable by individuals with disabilities, including individuals who use wheelchairs, with the exception of the items identified in paragraph 20, below.

The online reservation system used by Megabus is not available to customers who wish to remain in their wheelchairs during their trip. Almost all of Megabus' reservations are made online and a seat can be reserved, when available, even shortly before departure. Customers who wish to remain in their wheelchairs, however, are instructed on the website not to purchase tickets online, but to call a toll-free number. According to the Megabus website, such reservations must be made at least 48 hours before the time of the intended travel. Customers who wish to remain in their wheelchair and call to book reservations online are assessed a $3 booking fee, even though they are not permitted the option of making reservations online.

On April 21, 2010, representatives from the Department conducted a survey of the accessibility features of two Vanhool OTRBs (Vehicles DD449 and DD044). No MCI OTRBs were surveyed, based on Megabus' intention to move toward a fleet of only double-decker buses. The accessibility requirements for OTRBs can be found at 49 C.F.R. pt. 38, subpt. G. The following violations were identified:

a.) The handrails and stanchions are extremely difficult for passengers to grasp from outside the vehicle while starting to board, and to continue their use throughout the boarding process, and not all handrails have cross-sectional diameters between 1 1/4 inches and 1 1/2 inches, as required by 49 C.F.R. § 38.155(a).

b.) Vehicle DD044 did not have two securement devices, as required by 49 C.F.R. § 38.159(a)(1).

c.) The transition from ramp to vehicle floor is not less than 1/2 inch, as required by 49 C.F.R. § 38.159(c)(3).

The April 21, 2010, survey of the accessibility features of two Vanhool OTRBs was conducted at Megabus' Washington, D.C., bus stop located in the parking lot on H St., NW, opposite 10th St. NW. While other Megabus stops are curbside, this stop was surveyed because it is uniquely located with a designated waiting area in a parking lot facility that is not curbside. At this site, the circulation path between the designated waiting area and the bus is a set of stairs, while the route for those in wheelchairs requires use of the vehicular way. The designated waiting area, in turn, is accessible from two entrances to the parking lot facility. The location of the accessible route does not coincide with and is not in the same area as this circulation path, as required by 49 C.F.R. § 37.9(a), and the revised Americans with Disabilities Act Accessibility Guidelines (ADAAG) at § 206.3. In addition, under ADAAG at § 206.2.1 the use of a vehicular way is not considered an accessible route to a facility entrance when a pedestrian route is provided.

ACTIONS TO BE TAKEN BY MEGABUS

Vehicles

Megabus will ensure that any new OTRB purchased or leased for use in its fixed route service will be accessible to individuals with disabilities, including individuals who use wheelchairs. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.183(a).

Within 30 days of the date of this Agreement, Megabus agrees to cease using its inaccessible MCI OTRB until that vehicle is modified so that it is accessible to individuals with disabilities, including individuals who use wheelchairs, or is replaced by a vehicle that is accessible to individuals with disabilities, including individuals who use wheelchairs.

Megabus shall maintain in operative condition those features of vehicles that are required to make the vehicles readily accessible to and usable by individuals with disabilities. These features include, but are not limited to, securement devices and lifts, ramps, and other means of access to vehicles. 49 C.F.R. § 37.161.

Within 120 days of the date of this Agreement, Megabus will remedy any violations identified in paragraph 20 in those Vanhool OTRBs used in its transportation business.

Within 120 days of the date of this Agreement, the Megabus fleet will be 100 percent accessible.

Service Request Forms

Within 60 days of the date of this Agreement, Megabus shall modify its Service Request Form so that it is modeled after the provisions required by 49 C.F.R. pt. 37, subpt. H, app. A, and distribute those forms to all employees and contractors who are responsible for handling requests for accessible transportation. Megabus, its employees, and its contractors shall use the Service Request Form to record all requests for accessible transportation service.

Megabus shall ensure that a copy of every Service Request Form is maintained for review by the Federal Motor Carrier Safety Administration ("FMCSA") and counsel for the United States.

Policies, Practices, and Procedures

Within 60 days of the date of this Agreement, Megabus shall review and, if appropriate, modify its policies, practices, and/or procedures so that its private transportation system is in compliance with 42 U.S.C. § 12184 and the implementing regulations, 28 C.F.R. pt.36 and 49 C.F.R. pts. 37 and 38.

Pursuant to paragraph 29, within 90 days of the effective date of this Agreement, Megabus shall provide to counsel for the United States copies of written policies, practices, training manuals and documents that:

a.) Outline the procedures by which Megabus will ensure that persons with disabilities receive accessible transportation on the day and at the time and place requested (subject to vehicle capacity) within the meaning of the ADA, including same-day and walk-up service, where available.

c.) At a minimum, these procedures shall include the following information:

i.) the procedures to be followed by Megabus, its employees, or contractors after it receives requests for accessible transportation on its web site, by telephone, or by other means;

ii.) the identification of the persons (with their job titles) that are responsible for ensuring that sufficient space is reserved on the appropriate vehicle for the trip requested;

iii.) the procedures used to notify customers with disabilities whether Megabus will provide the requested accessible service on the date and at the time and place requested;

vi.) the identification of the persons (with their job titles) responsible for ensuring that the wheelchair lift or ramp is properly maintained and operational, and that the keys to operate the lift or ramp are on the bus prior to leaving a pick-up location or station;

v.) the procedures and means by which Megabus will ensure that it maintains in operative condition those features of vehicles that are required to make the vehicles readily accessible to and usable by individuals with disabilities;

vi.) the procedures for safely assisting people on and off a wheelchair lift or ramp;

vii.) the procedures for properly securing a wheelchair on the bus;

viii.) the procedures for maintaining records of requests for accessible transportation;

ix.) the procedures for complying with FMCSA's reporting requirements; and

x.) the procedures for documenting and handling any accessibility-related complaints.

Reservations and Website

Megabus will not require or request a passenger with a disability to reschedule his or her trip, or travel at a time other than the time the passenger has requested, subject to seat availability (vehicle is at capacity). 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.207(c).

Subject to the time period set forth in paragraph 33, Megabus will provide on line reservation services to passengers with disabilities equivalent to those provided other passengers. 42 U.S.C. § 12184(b)(4)(A), and 49 C.F.R. § 37.207(d). Until such time, no booking fee shall be charged to make a phone reservation for a person using a wheelchair, scooter, or similar assistive device.

Within 365 days of the effective date of this Agreement, Megabus shall create a link on its home page that enables a person with a disability to reserve a seat, subject to availability, on an accessible OTRB at a particular time and place and to have his or her accessible seat confirmed in a prompt manner so as to ensure that services to passengers with disabilities are equivalent to those provided other passengers in accordance with the requirements of section 304 of the ADA, 42 U.S.C. § 12184, and the implementing regulation, 49 C.F.R. § 37.207(d).

Within 60 days of the effective date of this Agreement, Megabus shall:

a.) Post a notice on its website indicating its obligation to provide accessible transportation to persons with disabilities, how to reserve accessible transportation, and that it does not discriminate on the basis of disability in the provision of its transportation services.

b.) Remove any language from its website which might be construed as requiring a 48 hour advance notice requirement for passengers with disabilities who use a wheelchair, scooter, or similar assistive device and need to remain in such device for their trip.

c.) Ensure that the website states clearly, until the requirements included in paragraph 33 have been fully implemented, that there is no booking fee for a person using a wheelchair, scooter, or similar assistive device to make a phone reservation.

d.) Ensure that the website reminds other passengers with disabilities (ambulatory passengers who cannot climb stairs, passengers with oxygen tanks, passengers with service animals, etc) that they do not need to call to book their trip, and that they may reserve online and ride as any other passenger.

e.) Update its website to include additional information under the "Passengers with Disabilities" link, such as a passenger's right to request an unscheduled rest stop on express runs of three hours or more, and the action a person may take if they believe that Megabus has denied them accessible transportation in violation of the ADA.

These notices shall be approved in advance by the United States and be posted for the duration of the Agreement.

Washington, D.C., Bus Stop

By May 15, 2011, Megabus will relocate its Washington, D.C., bus stop so as to resolve the deficiencies identified in paragraph 20 and to a location meeting the accessibility requirements of ADAAG. In the event that Megabus does not relocate by May 15, 2011, Megabus will agree to resolve the deficiencies identified in paragraph 20 by June 15, 2011.

Training

Within 180 days of the effective date of this Agreement, Megabus shall provide refresher training to all employees and contractors, including telephone reservationists, about the requirements of the ADA and how they apply to Megabus, including the policies, practices, and procedures to be adopted as the result of this Agreement. Megabus shall also implement a policy to train all new employees and contractors, including telephone reservationists, within 30 days of hiring on the requirements of the ADA and the policies, practices, and procedures to be adopted as the result of this Agreement. Megabus shall ensure that all of its employees and contractors, including telephone reservationists, are trained to proficiency to comply with this Agreement and to carry out its revised policies, practices, and procedures so as to ensure compliance with the ADA.

Megabus agrees that all training manuals or written materials dealing with policies and practices related to accessibility revised or created after the effective date of this Agreement shall be consistent with the provisions of this Agreement, and approved in advance by counsel for the United States.

Penalty and Damages

Within 60 days of the effective date of this Agreement, Megabus shall pay a civil penalty in the amount of $55,000 as authorized by 42 U.S.C. § 12188(b)(2)(C) and 28 C.F.R. § 36.504(a)(3), as amended, in order to vindicate the public interest.

Megabus will pay compensatory damages to the complainant in the amount of $12,500, as authorized by 42 U.S.C. § 12188(b)(2)(B) and 28 C.F.R. § 36.504(a)(2), contingent on his execution of a General Release.

Reporting

Megabus shall fully comply with the annual reporting requirements of the FMCSA as set forth in 49 C.F.R. §§ 37.213(c) and (d).

Megabus will report to the United States on its progress in implementing this Agreement 90 days from the effective date of this Agreement, and then every 6 months thereafter, for the duration of the Agreement.

Megabus will notify the United States within 30 days when it has completed the actions described in paragraphs 23, 25, 27, 30, 33, 34, 35, 36, and 39.

IMPLEMENTATION

In consideration of the Agreement, set forth above, the United States will refrain from undertaking further action relating to this investigation or from filing a civil action alleging discrimination based on the facts set forth above, except as provided in paragraph 44 below.

The United States may review compliance with this Agreement or title III of the ADA at any time. If the United States believes that this Agreement or any portion of it has been violated, it will raise its concerns with Megabus and the parties will attempt to resolve the concerns in good faith. The United States will give Megabus 30 days from the date it notifies Megabus of any breach of this Agreement to cure that breach before instituting an enforcement action.

Failure by the United States to enforce this entire Agreement or any of its provisions shall not be construed as a waiver of its right to do so with regard to other provisions of this Agreement.

This Agreement shall be binding on Megabus, including all principals, agents, executors, administrators, representatives, employees, successors in interest, beneficiaries, assigns, and legal representatives thereof. In the event that Megabus seeks to sell, transfer, or assign all or part of its interest during the term of this Agreement, as a condition of sale, transfer, or assignment, Megabus shall obtain the written accession of the successor or assignee to any obligation remaining under this Agreement for the remaining term of this Agreement.

A signatory to this document in a representative capacity for either party represents that he or she is authorized to bind that party to this Agreement.

This Agreement constitutes the entire agreement between the United States and Megabus on the matters raised herein and no other statement, promise or agreement, either written or oral, made by any party or agents of any party, that is not contained in this written Agreement, including its attachments, shall be enforceable.

This Agreement is not intended to remedy any other potential violations of the ADA or any other law that is not specifically addressed in this Agreement. Nothing in this Agreement changes Megabus's obligation to otherwise comply with the requirements of the ADA.

Megabus has cooperated fully in the investigation of this matter and has in good faith attempted to review and resolve any issues raised, in an effort to comply with ADA requirements and improve best practices for its customers. Megabus does not admit liability or fault, nor any violation of the ADA or any other law. Rather, this Agreement is voluntarily entered into by the parties for the purpose of resolving disputed issues and improving best practices and customer service.

EFFECTIVE DATE/TERMINATION DATE

The effective date of this Agreement is the date of the last signature below.

The duration of this Agreement will be three years from the effective date.